Europe Movers: 4imprint, Burberry, Ericsson, Givaudan, Signify

Inga Muller
24 Jan, 2025
Frankfurt

European markets lacked direction in Friday's trading but logged strong weekly gains ahead of rate decisions next week. 

The DAX index moved higher by 0.3% to 21,472.45; the CAC-40 index jumped 0.9% to 7,966.92; and the FTSE 100 index eased by 0.3% to 8,536.85. 

The yield on 10-year German bonds inched higher to 2.55%, French bonds rose to 3.32%, the UK gilts increased to 4.67%, and Italian bonds edged higher to 3.66%.

Ericsson traded flat at 97.62 krona after the Swedish telecom company missed estimates as sales in India remained slow.

Fourth-quarter sales increased 1% to SEK 72.9 billion from SEK 71.9 billion, net income rose 43% to SEK 4.9 billion from SEK 3.4 billion, and diluted earnings per share jumped to SEK 1.44 from SEK 1.02 a year ago.

Network sales grew by 4% to SEK 46.8 billion despite a currency negative impact; cloud software and services sales declined by 1% to SEK 19.5 billion, and enterprise sales dropped by 9% to SEK 6.1 billion.

Sales in Southeast Asia, Oceania, and India plunged by 38%, following a record year in 2023, and sales in Northeast Asia declined by 22% due to fewer investments in some 5G frontrunner markets.

Cash flow from operating activities rose to SEK 17.5 billion from SEK 14.5 billion, while cash from investing and financing activities remained negative.

Free cash flow after mergers and acquisitions increased to SEK 15.7 billion from SEK 12.2 billion a year ago.

Ericsson expects to pay dividends on April 1 and October 2 to shareholders on record by March 27 and September 29, 2025. 

4imprint Group Plc gained 0.2% to 5,600 pence after the international direct marketer of promotional products posted a 3% revenue increase in 2024.

Revenue is expected to rise 3% to $1.37 billion from $1.33 billion; profit before tax is expected to increase to $153 million from $141 million a year ago, surpassing the upper range of analyst projections.

Gross profit margin has remained strong at around 32%, driven by a 5% rise in customer orders, although new orders were down 9% from the prior year.

Excluding a $20 million investment to expand the Oshkosh apparel distribution center, 4imprint expects unaudited cash and bank deposits to rise to $148 million from $105 million a year ago.

Burberry Group Plc surged 15% to 1,233 pence after the British luxury retailer said its third-quarter sales decline was lower than expected, helped by American shoppers.

Revenue dropped 7% to £659 million from £706 million, and overall comparable store sales fell 4%.

Comparable sales in the Asia-Pacific region decreased 9%, and in Europe, the Middle East, India, and Africa, they fell 2%, but in the Americas, comparable sales rose 4%.

Second-half results will broadly offset the first-half adjusted operating loss, the company said in a statement.

Givaudan SA dropped 2.3% to CHF 3,849 after the cosmetic ingredients maker lifted its five-year sales target.

Sales in fiscal year 2024 increased 7.2% to CHF 7.4 billion from CHF 6.9 billion; net income rose 21% to CHF 1.09 billion from CHF 893 million, and earnings per share rose to CHF 118.2 from CHF 96.81 a year ago.

Operating cash flow surged 18.4% to CHF 1.62 billion, driven by a 10.5% increase in fragrance and beauty sales and taste and wellbeing sales up 4.1% from the previous year.

Sales growth was highest in South Asia, the Middle East, and Africa, as well as in Latin America, while in Asia Pacific the company recorded an 8.8% growth compared to a loss of 2.6% last year. 

In North America, sales increased 5.5% from a loss of 7.5% last year.

On March 20, 2025, Givaudan’s board will propose a cash dividend of CHF 70.00 per share, an increase of 2.9% versus 2023.

This is the twenty-fourth consecutive dividend increase since the company was listed on the Swiss stock exchange in 2000.

Signify NV added 4.3% to €23.72 after the Philips lighting spin-off said fourth-quarter comparable sales dropped by 2.8% due to weakness in Europe and China.

Sales declined to €1.65 billion from €1.73 billion; net income rose to €119 million from €59 million, and earnings per share jumped to €0.91 from €0.44 a year ago.

Signify management proposed a cash dividend of €1.56 per share for 2024, to be approved by the company's board on April 25, 2025.

The company’s stock repurchase program is worth €350 million to €450 million of shares until the end of 2027.